Gems Log

The sale of Burmese gems has become the target of a growing boycott following the violent crackdown of pro-democracy protesters in Burma in September. While Burma’s ruling military government holds another gem auction, the market for those precious stones is getting smaller. As VOA’s Kane Farabaugh reports from New York, more and more jewelry retailers in America are refusing to sell Burmese gems.

The people who mine them call the coloring of these precious stones “pigeon-blood” red.

Thomas Moses, who works for the Gemological Institute of America, or GIA, knows the value and uniqueness of these gems, which come from only one place in the world. “Historically, Burma rubies were one of the most sought after gems in the gem and mineral kingdom,” he tells us.

Throughout the years, Moses says, Burma was generally not a major exporter of the precious rubies. That changed in 1991 when a new deposit was discovered in the eastern part of the country. “Burma today is probably the largest producer of commercial quality rubies that are in the marketplace.”

A 2003 law bans the sale of Burmese gems in America. But a loophole in the law has kept those gems in the marketplace says Peggy Jo Donahue of the Jewelers of America. “As long as a gem is cut in Thailand, for example, or in India, it is not considered a product anymore of Burma. Technically I guess you could say Burmese gems legally could be here if they were cut and polished in a different place,” she says.

The Jewelers of America felt that the loophole did not follow the spirit of the legislation, designed to keep money from the sale of those gems out of the hands of the Burmese military government. They also discovered many jewelers knew little about the ban.

“I spoke to jewelers who never knew of a Burmese ban of any kind,” says Donahue. “Our consciousness was raised as an industry by the events that we saw taking place in August and September, and then the sense that we had that gemstones that we knew came from Burma, therefore we needed to do something about it.”

The Jewelers of America now educates its members, encouraging them to support the ban by not selling the gems in their stores.

Tiffany and Company as well as Cartier are two of several major jewelers that have signed on to the effort. First lady Laura Bush, an outspoken critic of the Burmese government, issued a statement last week applauding companies who support the ban.

As more jewelers sign on, demand increases to identify the origin of rubies in the marketplace. It’s a service Donna Beaton with the GIA helps provide to customers. “There’s a hierarchy of value that has been established in the trade already, so people want to know where it comes from hoping it comes from a premiere source. So in the case of rubies, Burma is a premiere source,” says Beaton.

Since the need to verify the origin now goes beyond just the value of the gem, GIA uses the latest technology to leave little doubt as to where a ruby in question comes from.

Wuyi Wang is a Research Project Manager with GIA. He uses high-powered lasers to cut microscopic pieces of a gem, which is then used to determine its chemistry. “You will see some difference between Burmese rubies and rubies from other locations, like from Vietnam for example,” he explains. “There are quite systematic differences, either gemological features including color, inclusions, as well as their chemistry.”

GIA expects an even greater demand for its services if further legislation banning the import of gems, regardless of where they were cut or polished, becomes law. That legislation is currently under consideration in the U.S. Congress.

House OKs bill to boycott Burma’s gems

The House approved a bill Tuesday meant to stop Burma’s rubies and high- quality jade from entering the United States. The bill tightens already tough sanctions against a ruling military junta that killed peaceful pro-democracy protesters and Buddhist monks in September.

The House bill would freeze assets by Burma’s leaders and cut off tax deductions for U.S. companies working in Burma, also known as Myanmar. It attempts to stop Burma from dodging U.S. sanctions through laundering gemstones in third countries before selling them in the United States.

“Burma’s generals fund this repression of their own people by selling off the country’s natural resources, especially oil and gems, leaving the Burmese people in poverty,” Democratic Rep. Tom Lantos, chairman of the House Foreign Affairs Committee, said in a statement. Tightened sanctions would “ensure that the United States stands up to these thugs.”

To avoid U.S. sanctions, the Burma regime tries to hide the origin of the gemstones it ships to the U.S. according to the bill, which passed by voice vote: “For example, over 90% of the world’s ruby supply originates in Burma, but only 3% of the rubies entering the United States are claimed to be of Burmese origin.”

The bill would also stop Burma’s leaders from using U.S. financial institutions in third countries to launder their money. Officials involved in the crackdown would be banned from getting U.S. visas, as would their families. The bill would also cut off tax deductions for U.S. companies working in Burma.

Similar legislation has been introduced in the Senate.

In August, thousands of Buddhist monks joined rallies against a fuel price increase. The junta began shooting and arresting protesters in September. Dissident groups put the death toll at about 200. Rights groups have reported continued arrests and abuse, despite claims by the junta that the crackdown has stopped.

Burma has been under military rule since 1962. The current junta came to power after snuffing out a 1988 pro-democracy movement against the previous military dictatorship, killing at least 3,000 people in the process.

Burma’s natural resources are coveted by its neighbors and by large companies around the world.

Burmese Blood Diamonds and Gems?

ABC News’ Jennifer Duck Reports: First Lady Laura Bush spoke out again on Myanmar, also known as Burma, this time applauding Tiffany, Cartier and the Jewelers of America for standing against the importation of Burmese gems.

Mrs. Bush says the sale of gems is the regime’s third largest source of revenue.

“These funds prop up the regime, allowing it to continue to harass, arrest, and sentence peaceful activists who seek freedom of speech, worship, and assembly,” she said in a paper statement.

The First Lady recently told ABC News’ Martha Raddatz that she was first aware of the human rights violations in the country when her cousin, who is an advocate for Myanmar, told Mrs. Bush the story of Ang San Suu Kyi, a Burmese activist, who has been under house arrest on and off for 18 years.

Thousands of monks began protesting in August of this year, and that’s when the First Lady decided to speak out.

“It was when we were at the ranch and, of course, a lot of people in government are gone during the month of August and I became more and more worried as I read these different dispatches because no one was speaking out,” Mrs Bush told Raddatz in an interview last month.

In addition to asking jewelers worldwide not to purchase Burmese gems, the First Lady is also urging consumers to choose their gems wisely.

“Consumers throughout the world should consider the implications of their purchase of Burmese gems. Every Burmese stone bought, cut, polished, and sold sustains an illegitimate, repressive regime,” Mrs Bush said in her statement.

US renews pressure on Burma junta

US President George W Bush has called on world leaders to increase pressure on Burma’s rulers, as US officials moved to ban imports of Burmese gems.

Mr Bush, reacting to a UN report that confirmed at least 31 people died in a recent crackdown, said there could be no “business as usual” with the junta.

He said the US would lead efforts to place more sanctions on the regime.

Meanwhile US lawmakers have voted to stop Burma’s rubies and high-quality jade from entering the United States.

The measure, passed by the House of Representatives, tightens sanctions against the junta by attempting to stop gem dealers from laundering their goods in third countries before they enter the US.

The bill, which must be approved by the Senate and president, also tries to stop Burmese leaders using US banks to launder money in third countries.

Democratic Rep Tom Lantos said in a statement: “Burma’s generals fund this repression of their own people by selling off the country’s natural resources, especially oil and gems, leaving the Burmese people in poverty.”

He added that tightened sanctions would “ensure that the United States stands up to these thugs”.

UN findings

Mr Bush, who already imposed tough sanctions against the junta in October, pledged further action after a new UN report shed light on the scale of repression in Burma.

Illicit Burmese trade

The UN’s human rights envoy, Paulo Sergio Pinheiro, said at least 31 people had died as the ruling generals sought to regain control after a wave of peaceful protests swept the country in September.

“Mr Pinheiro’s report demonstrates why the world cannot go back to business as usual with [Burma's leader] Gen Than Shwe and his junta,” Mr Bush said in a statement.

“I call on all members of the international community to condemn the atrocities detailed in Mr Pinheiro’s report in the strongest possible terms.”