Bush admin opposes Sudan divestment bill

By Rachelle Younglai

WASHINGTON (Reuters) - A bill that would allow U.S. states to divest from companies doing business in Sudan could hurt international efforts to end the violence in war-torn Darfur, Bush administration officials told a Senate panel on Wednesday.

The pending Senate bill aims to put economic pressure on Sudan to stop the violence in its western Darfur region, where an estimated 200,000 people have been killed since rebels took up arms against the government in 2003.

Jendayi Frazer, assistant secretary of state for African affairs, said the Bush administration was confident its sanctions were working and warned against legislative measures that might undo progress.

"We are concerned that some initiatives to increase economic pressure on Sudan will damage our relationship with our key partners rather than increase pressure in Khartoum," Frazer told the Senate Banking Committee hearing.

But several senators voiced support for the bill and said they would work to get it passed.

Democratic Sen. Robert Menendez of New Jersey said he did not "understand how the State Department can come before committee and say this is inappropriate."

Sen. Sam Brownback of Kansas, a bill co-sponsor and Republican presidential candidate, said: "We have a responsibility to ensure that genocide does not continue on our watch or on our dime."

In July, the House of Representatives overwhelmingly passed a bill that would protect investment managers who pull money out of key sectors in Sudan from lawsuits from disgruntled investors. It also calls on the U.S. government to list companies whose business in Sudan supports "genocidal practices."