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Following The Burma Campaign's high
profile campaign Triumph International have now pulled out of Burma.
Read the Press Release
summary
Burma is ruled by an illegitimate military dictatorship - one
of the most tyrannical and secretive the modern era has seen - a
regime that refuses any democratisation of the political system,
that systematically violates the most fundamental human rights,
and that oppresses and exploits its population. It is a regime engaged
in the perpetuation of relentless misery.
Triumph International is a Swiss-based German multinational
company owned by the Spiesshofer and Braun families. The company
is one of Europe's main retailers of lingerie. The company has an
annual turnover of US$ 1.6 billion and employs more than 30,000
people worldwide. In 1996 Triumph International established a company
in Burma 'Myanmar Triumph International'. The company began operating
a factory there in April 1997 exporting lingerie to the international
market.
Triumph's presence in Burma has given rise to much controversy.
An international campaign supported by the following organisations
is calling on the company to close down its Burmese production site:
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The Burma Campaign UK |
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The Burma Centre Netherlands |
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The European Clean Clothes Campaign |
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APHEDA - Union Aid Abroad, Australia |
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The International Confederation of Free Trade
Unions (ICFTU) |
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The International Textile, Garment and Leather
Workers' Federation (ITGLWF) |
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The exiled Federation of Trade Unions - Burma
(FTUB) |
With particular thanks to the Canadian Friends of Burma for
the use of their 1996 report 'Dirty Clothes: Dirty System'.
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"Foreign investment in most countries acts as a catalyst
to promote change, but the Burmese regime is so single-minded
that whatever money they obtain from foreign sources they pour
straight into the army while the rest of the country is collapsing"
Burton Levin, former US Ambassador to
Burma
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Burma's military regime is responsible for:
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The refusal to transfer power to a government
democratically elected in 1990 under the leadership of Nobel
Peace Laureate Aung San Suu Kyi who is held under house arrest. |
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Millions of men, women and children in forced
labour - often imposed with the threat of physical abuse, beatings,
torture, rape and murder. |
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One and a half million internally displaced people,
in part the result of ethnic cleansing campaigns against minority
groups. |
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The detention of approx. 1500 political prisoners,
many of them routinely tortured. |
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Thousands of refugees who have fled to Thailand,
China, India and Bangladesh. |
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The production over the last decade of most of
the world's illegal opium and heroin. |
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One of the largest armies in Asia even though
the country has no external enemies. |
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The closure of Burma's universities for most of
the last decade in an attempt to avoid civil unrest. A whole
generation's education and opportunity has been lost. |
Burma was once one of Asia's healthiest economies, and seen to
be one of the most promising of the newly independent countries
at the end of the Second World War. By 1987 however the country
had been given United Nations' Least Developed Country status and
at the start of the 21st century Burma is among the world's lowest-income
countries. The dramatic change in Burma's fortunes is a consequence
of four decades of dictatorship by a regime that is as corrupt and
inept as it is brutal.
According to the regime's official statistics, since 1988 Burma
has attracted US$7.39 billion of foreign investment in 366 projects
as of the end of August 2001. In 2000 investments totalled US$152.8million
mostly injected into the manufacturing, oil and agriculture sectors
of the economy. A total of US$49.49 million has been invested in
10 projects in the first eight months of this year. (Xinhua, November
2001).
However the windfall of income generated has not contributed to
the social and economic welfare of Burma's people. It has instead
helped the regime to defer essential economic reform and to dramatically
expand Burma's armed forces. Nearly half the national budget is
consistently spent on 'defence', while around five per cent is spent
on health and social services combined. Over the last fourteen years
an influx of foreign capital has been used to more than double the
size of the military and to enrich a narrow elite closely connected
to senior military personnel.
Burma's people meanwhile have grown ever poorer. Burma is now a
country that hovers persistently on the brink of bankruptcy. A resource
rich country has a population suffering widespread malnutrition,
high under-five and maternal mortality, escalating HIV transmission
rates and a burgeoning education deficit. With water shortages and
routine electricity blackouts public services have all but collapsed.
An influx of foreign capital has served simply to strengthen -
financially and politically - the very dictatorship that oppresses
and impoverishes the people of Burma. For these reasons Burma's
elected representatives have asked the international community -
governments and international corporations - to take what measures
it can to stem the flow of foreign capital into the regime's coffers;
to help cut the lifeline that sustains them and further delays Burma's
transition to democratic governance.
In May 1997, President Clinton issued a federal order banning any
new investment in Burma by US businesses. Selective purchasing legislation
passed by a number of US states and cities places pricing penalties
on companies doing business in Burma -effectively denying them contracts
to provide goods and services. Additional legislation has recently
been proposed in the US which seeks to ban the import of any article
produced, manufactured or grown in Burma. This will have a marked
effect on clothing imports from Burma which soared to $454 million
in 2000 from $168 million in 1999 (Wall Street Journal, July 9,
2001). Though the European Union has not yet imposed sanctions legislation,
a number of significant European governments - notably the UK -
do now actively discourage trade and investment with Burma's regime.
Burma is arguably one of world's most prolific abusers of labour rights.
Despite the fact that Burma has ratified International Labour Organisation
(ILO) Convention 29 on Forced Labour, Burma's regime systematically
violates the convention on a daily basis. According to UN reports
"The military
treat the civilian population as an unlimited
pool of unpaid forced labourers and servants at their disposal. The
practice of forced labour is to encourage private investment in infrastructure
development, public sector works and tourism projects." (Forced
labour in Myanmar (Burma), ILO, July 1998).
In 1989, the U.S. Government suspended Burma from eligibility for
preferential trade concessions under the Generalized System of Preferences
Programme (GSP) because of its violation of labour rights. In March
1997, the European Union followed suit; suspending Burma from its
GSP program because of its use of forced labour. In 1997 the ILO
set up an official Commission of Inquiry into the use of forced
labour in Burma:
"There is abundant evidence before the Commission showing
the pervasive use of forced labour imposed on the civilian population
also threats to the life and security and extra-judicial punishment
of those unwilling, slow or unable to comply with a demand for forced
labour; such punishment or reprisals range from money demands to
physical abuse, beatings, torture, rape, and murder
Forced
labour is widely performed by women, children, and elderly persons
as well as persons otherwise unfit for work."
By the time the ILO annual conference met in June 1999 the regime
had still failed to implement any of the recommendations made by
the Commission to bring laws and practice into compliance. As a
result, the ILO passed a resolution finding the attitude of the
government of Burma "grossly incompatible with the conditions
and principles governing membership in the organization." The
resolution went on to state: "the Government of Burma should
henceforth cease to benefit from any technical cooperation or assistance
from the ILO" and "should henceforth not receive any invitation
to attend meetings, symposia, and seminars organized by the ILO,
until such time as it has implemented the conclusions of the Commission
of Inquiry."
In November 2000 given no improvement in the situation the ILO went
further still; adopting an unprecedented resolution calling on other
organisations, as well as on national governments and private companies,
to review their relations with Burma, in order to ensure their relations
do not serve to perpetuate or extend the widespread system of forced
labour. In October 2001 an ILO mission to Burma to assess progress
on the issue confirmed that forced labour remains widespread. The
November 2000 resolution therefore remains in place.
The International Confederation of Free Trade Unions has been co-ordinating
an international campaign in this regard to draw an appropriate
response from all governments and international companies. This
has amounted to a campaign for trade and investment sanctions to
be imposed on Burma's regime and the naming and shaming in the media
of companies active in the country.
| corporate concern/corporate complicity |
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Over the last decade an increasing number of international corporations
have left Burma or declared their unwillingness to consider operating
there; Burton, British Home Stores, Liz Claiborne, C&A, Ericsson,
Heineken, Phillips, Levi Strauss, Apple, Pepsi Cola, Reebok and Fosters
amongst them. Some companies have withdrawn asserting that their decision
to do so was taken for 'business' reasons, whilst others have made
explicit their concern regarding the political and human rights situation
in Burma. When the American department store Macy's - for example
- announced in 1994 its decision not to source garments from Burma
anymore, it said it found it impossible to operate there without running
the risk of violating the US Corrupt Foreign Practices Act.
Other companies have issued the following statements upon withdrawing:
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"We do not feel that we can adequately apply our human
rights standards and do business in Burma"
Reebok, 1997
"It is not possible to do business in Burma without
directly supporting the military government, and its pervasive
violations of human rights."
Levi-Strauss, 1992
"Public opinion and issues surrounding this market
(Burma) have changed to a degree that could have an adverse
effect on our brand and corporate reputation."
Heineken, 1996
The policy of Liz Claiborne is to promote positive change
in developing nations where people produce our products. Current
conditions in Burma prevent Liz Claiborne from complying with
that policy."
Liz Claiborne, 1994
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A number of other multi-national corporations have yet to reach the
same conclusions about operating in Burma under dictatorship; Premier
Oil (UK), Orient Express/Sea Containers (UK), Unocal (US), Total (France),
Mitsubishi (Japan), Suzuki (Japan), British American Tobacco (BAT)
and Triumph International (German) number amongst them. Most of these
companies face on-going public campaigns against them.
The briefing that follows focuses specifically on the involvement
of Triumph International in Burma.
The US State Department suggests that garments are one of Burma's
fastest growing and most valuable legal exports. According to a Wall
Street Journal article, July 2001 there are currently some 400 garment
manufacturing factories in Burma. Low pay and the military junta's
prohibition on unions have undoubtedly helped draw manufacturers to
the country.
Working hours in the industry are said to be particularly 'flexible'
- approaching 60 hours a week and average shop-floor wages are said
to be amongst the lowest in the world. According to the trade journal
Textile Asia, October 1995 Burma's 'biggest attraction (is)
ultra
cheap labour". Burma "offers numerous cheap English speakers;
control and communication cause no problems." Workers in Burma
are denied the right to organize and bargain collectively to set
wages and benefits.
A BBC Newsnight documentary in 1997 reported that at one factory
it was routine for employees to have to hand over half their earnings
as the price of keeping their jobs. At another where employees dared
to protest at working conditions two truckloads of armed soldiers
appeared and threatened to arrest them if they failed to return
to work.
Despite this the European market for Burmese made garments looks
set to increase. Since the introduction of proposed US legislation,
which would prohibit within 15 days of enactment the import of any
article produced, manufactured or grown in Burma, international
garment buyers have already begun ordering from alternative sources
in Asia. Simultaneously Burma-based manufacturers have been exploring
in earnest alternative outlets in Europe to weigh against lost US
business.
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"There are hundreds of countries in the world to do business
in. Why would you pick a place where you're going to get your
name in the newspaper? No one wants that. Being in Burma is
taking a chance."
Laura Jones
Executive Director
US Association of Importers of Textiles and Apparel
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Triumph International is a German multinational
company founded in 1886 and owned by the Spiesshofer and Braun families.
The Switzerland-based company is one of Europe's main retailers
of lingerie. The company has a turn-over of US$ 1.6 billion and
employs more than 30,000 people worldwide (Triumph International
website, 2001.)
In 1996 Triumph International established a company in Burma 'Myanmar
Triumph International'. It began operating a factory there in April
1997 exporting almost 100% of its lingerie production to the international
market. The factory employs 845 Burmese workers who according to
Triumph work a 48-hour week for US1.00/day (Letter from Director
of Triumph UK, July 2001).
The factory is located on a military-designated industrial estate
called Pyin-Ma-Bin north of Rangoon's airport. The factory is rented
from the Union of Myanmar Economic Holdings (UMEH).
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Triumph's landlord UMEH is a military controlled
institution established in 1990, which controls investment in
the industrial sector in Burma. Members of its Board are all,
without exception, linked to the military regime. Burma's Defence
Ministry's Directorate of Procurement (responsible for weapons
procurement) is a 40% shareholder and largely directs UMEH operations.
The remaining 60% of share capital is reserved for active and
retired military officers, army-owned business enterprises and
friendship societies including veteran groups. UMEH is a joint
venture partner of numerous foreign garment manufacturers including
Daewoo, Segwe and Unimix |
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The Triumph factory site is within Pyin-Ma-Bin
industrial zone north of Rangoon. This area is reported to have
been upgraded in July 1996 by construction crews of forced labourers
under army control (Dirty Clothes - Dirty System, Canadian Friends
of Burma, 1996). This would have been immediately prior to the
opening of the Triumph factory. |
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Almost 100% of Triumph's Burma production is for
export. Therefore in addition to rental payments to UMEH, the
company will also pay a 5% tax to Burma's authorities on all
production for export. Commercial taxes are additionally paid
on all local sales and on all raw materials for local sales. |
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The International Labour Organisation (ILO) Resolution
has implications for Triumph - as it does for all business operations
in Burma. "This resolution affects Triumph," says
Neil Kearney of the International Textile, Garment and Leather
Workers Federation (IGTLWF), "The garment industry provides
support to the military, mainly to its most senior members.
And it is precisely these senior members who are responsible
for the massive forced labour problem affecting the civilian
population. In addition, the garment industry relies on the
country' s infrastructure, which is being built with forced
labour". |
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As a member of the European Apparel and Textile
Organisation (EURATEX) Triumph subscribes to the Code of Conduct
negotiated with the European Trade Union Federation of Textiles,
Clothing and Leather (ETUC: TCL), which includes the ILO forced
labour convention. The Code also affirms the right for workers
to form and join a trade union and to negotiate freely - a right
denied workers in Burma. |
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Despite the weight of evidence Triumph continues
to demonstrate little concern or understanding of the human
rights situation in Burma. When confronted on Swiss TV (TSR)
with a question about the use of forced labour on construction
projects, Triumph's Director Wolfgang Spiesshofer, responded
with his own question: "The people in Burma do not pay
taxes, this is not possible in that country. So if the government
has to construct a road or an airport or something else, how
could they do it differently?" |
| triumph's response to the campaign |
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"The people in Burma do not pay taxes, this is not
possible in that country. So if the government has to construct
a road or an airport or something else, how could they do it
differently?
Triumph's Director Wolfgang Spiesshofer
on the regime's use of forced labour
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To date Triumph has pointedly refused to close down its
production site. In attempting to justify its position the company
argues that a withdrawal would mean the dismissal of 845 employees.
According to Triumph, the campaign is purely a "political"
one aimed at a private company.
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Nobel Peace Laureate Aung San Suu Kyi, leader of the National
League for Democracy, Burma:
"What do these advocates of precipitate economic engagement
see when they look at our country? Perhaps they merely see
the picturesque scenery, the instinctive smiles with which
Burmese generally greet visitors, the new hotels, the cheap
labour and what appear to them as golden opportunities for
making money. Perhaps they do not know of the poverty in the
countryside, the hapless people whose homes have been razed
to make way for big vulgar buildings, the bribery and corruption
that is spreading like a cancerous growth, the lack of equity
that makes the so called open market economy very very open
to some and hardly ajar to others, the harsh and increasingly
lawless actions taken by the authorities against those who
seek democracy and human rights, the forced labour projects
where men, women and children toil away without financial
compensation under hard taskmasters in scenes reminiscent
of the infamous railway of death of the second World War.
It is surprising that those who pride themselves on their
shrewdness and keen eye for opportunity cannot discern the
ugly symptoms of a system that is undermining the moral and
intellectual fibre and, consequently, the economic potential
of our nation. If businessman do not care about the numbers
of political prisoners in our country they should at least
be concerned that the lack of an effective legal framework
means there is no guarantee of fair business practice or,
in cases of injustice, of reparation. If businessmen do not
care that our standards of health and education are deteriorating,
they should at least be concerned that the lack of a healthy,
educated labour force will inevitably thwart sound economic
development. If businessmen do not care that we have to struggle
with the difficulties of a system that gives scant attention
to the well-being of the people, they should at least be concerned
that the lack of necessary infrastructure and an underpaid
and thereby corrupt bureaucracy hampers quick, efficient transactions.
If businessmen do not care that our workers are exposed to
exploitation, they should at least be concerned that a dissatisfied
labour force will eventually mean social unrest and economic
instability.
Neil Kearney, General Secretary ITGLWF:
"The company's concern for its workers is touching. But
what about the 13 million people living below subsistence
levels and the 40% of children suffering from malnutrition
as a result of the junta's misrule? Or the two million men,
women and children pressed into forced labour on construction
projects or as porters in the army? Or the 300,000 who have
been forced to flee the country? Or the 800,000 people displaced
either by the government's relocation policy or because of
fighting? Or the 1,500 political prisoners held behind bars
in horrendous conditions and routinely tortured?
The fate of a population of forty million people, condemned
to live in poverty and fear by an odious regime, outweighs
the limited benefits afforded by 845 low-paid jobs. While
the 845 workers who lose their jobs might suffer in the short-term,
by hastening the regime's demise the move would provide longer-term
benefits for them and their families. Only a transition to
democracy will give these workers the fundamental right to
form independent unions and to engage in collective bargaining.
The company should know that pressure will not abate as long
as it continues to support the illegal, corrupt and undemocratic
regime in Rangoon".
U Maung Maung, General Secretary, The Federation of Trade
Unions Burma:
"Triumph is doing business directly with the Union of
Myanmar Economic Holdings (UMEH), a company that is controlled
by the military that represses our people and engages in atrocious
human rights abuses
Unfortunately, it is a fact that
direct investment in Burma first benefits the military regime
in our country. By strengthening the regime financially, this
investment makes it much more difficult for the democratic
forces and the trade union movement to persuade the SPDC generals
to step aside. For this reason, we need strong international
pressure on foreign companies in Burma.
The best way to ensure the long-term happiness and prosperity
of Burmese workers is for them to be free, and represented
by independent trade unions. This cannot happen as long as
SPDC is in power, and continues to receive monetary support
from foreign companies".
Bill Jordan, General Secretary, International Confederation
of Free Trade Unions:
"Based on the evidence available, the international trade
union movement firmly believes that it is impossible to conduct
any trade or other economic activity with Burma without providing
direct support, mostly financial, to the military junta. The
top military hierarchy is directly responsible for the massive
use of forced labour. This has also been clearly established
by the ILO Commission of Inquiry. Any commercial or economic
links with Burma therefore help the junta 'to perpetuate or
extend the system of forced or compulsory labour'.
Recently, we held a meeting in Tokyo to develop a strategy
for further trade union action on Burma. That meeting adopted
a statement that, among other things, stated that 'national
and multinational companies trading with and/or investing
in Burma should withdraw as a matter of urgency and bans on
imports from and exports to Burma should be introduced immediately.
The union movement at every level must initiate early discussion
with such companies. Failure of companies to comply will mean
public exposure by the international trade union movement
and the promotion of other action, as appropriate, including
consumer pressure and boycotts.'
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| the campaign against triumph international |
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Members of the public unwittingly play a part in the chain of complicity
in Burma when they buy goods from companies operating in Burma. The
act of purchasing Triumph products by the general public is the final
step in an economic process that helps to perpetuate the existence
of Burma's military junta.
Triumph's refusal to close its Burmese production site is likely
to have more to do with the total lack of freedom in Burma than
genuine concern for the workers it employs. The company does not
after all have an unblemished record with regard to respect for
the labour rights or the well being of its workers in other parts
of the world; in May 2000 for example the company dismissed 21 Filipino
employees belonging to a trade union who were asking for the legal
minimum wage to be upheld.
Garment manufacturers do business in Burma because of rock-bottom
wages and a 'compliant' workforce; cheap clothes and higher profits
are the real issue of concern for them. This is after all an industry
known to hop from country to country in search of the cheapest workforce
with little regard to the consequences of withdrawing business from
previous clients and workers.
Most companies sourcing clothing in Burma or with manufacturing
bases in the country have an international high street presence.
This gives consumers in these countries the power to take direct
action against an industry prepared to bolster one of the worlds
most corrupt and brutal dictatorships.
The aim of this campaign is not merely to inform but to inspire
people to take action. Consumer power can make a difference. Individuals
can play a role by choosing not to buy an item manufactured in Burma
or the products of those companies that refuse to end their presence
in Burma. Companies should be told of your decision not to buy their
goods, and the reasons why. We can vote for change in Burma through
our wallets.
Though this campaign targets Triumph International, through it
we aim to effect a change in attitude towards business in Burma
within the wider clothing and textile industry.
| campaign aims and objectives: |
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The Burma Campaign UK is calling for Triumph International to withdraw
from Burma.
The campaign will:
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Engage the company in dialogue about the issues
concerned with the aim of securing their withdrawal from Burma. |
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Educate members of the public about the issues;
encouraging a boycott of all Triumph products. |
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Encourage high street retailers of Triumph products
such as Debenhams and Selfridges to terminate contracts with
the company until it withdraws form Burma. |
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Dirty Clothes: Dirty System, Canadian Friends
of Burma, 1996 |
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Clean Clothes Campaign,
www.cleanclothes.org/companies/triumph.htm |
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Investing in Burma, Kirsty Jenkinson-Thomas, BCUK
2001, |
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International Textile, Garment and Leather Workers'
Federation, press release, 2001 |
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Burma Campaign UK, Bickerton House, 25-27 Bickerton
Road, London, N19 5JT. Tel: 44 207 281 7377. E-mail: info@burmacampaign.org.uk |
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David Hornbuckle, Director, Triumph International
Ltd. Arkwright Road, Groundwell Swindon, Wiltshire SN2 5BE.
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Gunther Spiesshofer, President, Triumph International,
#133 Hoi Bun Road, 7th Floor Piazza Building, Kwun Tong, Kowloon,
Hong Kong. |
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Myanmar Triumph International, No.3, Trunk Road
Pyin-Ma-Bin Industrial Estate, Htauk Kyant, P.O. Mingaladon
Township, Rangoon, Burma. |
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