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Foreign and Commonwealth Office

Answer

Mr. Ancram: To ask the Secretary of State for Foreign and Commonwealth Affairs (1) whether Article 8a of Council Regulation (EC) 798/2004, as inserted by Article 1 of Council Regulation (EC) No 1853/2004, will prevent persons resident in, or companies registered in, the EU from entering into joint venture partnerships with Burmese state-owned enterprises listed in Annex IV; [198385] (2) whether Article 8a of Council Regulation (EC) 798/2004 will apply to Burmese-registered subsidiary companies, wholly-owned or otherwise, of companies registered in the EU; [198386] (3) what is meant by the phrase `the acquisition of a participation' in a Burmese state-owned enterprise within Article 8a(1)(b) , of Council Regulation (EC) 798/2004. [198387] Mr. Straw: I refer the hon. Gentleman to Articles 8a(l) , 8a(2) and 14 of the Council Regulation (EC) 798/ 2004 (Official Journal, L 125, 28.4.2004, p.4), as amended by Council Regulation (EC) No. 1853/2004 (Official Journal, L 323, 26.10.2004, p.11). Paragraph 1 of Article 8a prohibits: "(a) the granting of any financial loan to Burmese state-owned enterprises as listed in Annex IV, or the acquisition of bonds, certificates of deposit, warrants or debentures, issued by these enterprises. (b) the acquisition or extension of a participation in Burmese state-owned enterprises as listed in Annex IV. including the acquisition in full of such enterprises and the acquisition of shares and securities of a participating nature." Paragraph 2 of Article 8a provides that: "The participation, knowing and intentionally, in activities, the object or effect of which is, directly or indirectly, to circumvent the provisions of paragraph 1 shall be prohibited." Article 14 provides that the Regulation shall apply: "(a) within the territory of the Community, including its airspace; (b) on board any aircraft or any vessel under the jurisdiction of a member state; (c) to any person inside or outside the territory of the Community who is a national of a member state; (d) to any legal person, group or entity which is incorporated or constituted under the law of a member state: (e) to any legal person, group or entity doing business within the Community." The application of these and the other provisions of Council Regulation (EC) No. 798/2004 in any given case will depend on all the facts and circumstances, and persons who think they may be affected should seek independent legal advice. It would not be appropriate for the Government to attempt to interpret the EC legislation on their behalf.

Secondary information

Type

Written question

Reference

426 c1778W;426 c1782W; 198385;198386;198387

Session

2003-04

EC documents

Reg(EC)798/2004

Subjects

Companies EU countries EU law EU external trade Foreign investment Joint ventures Subsidiary companies Sanctions Myanmar EU external relations

Link

View this Written question on www.publications.parliament.uk