Disney's image at risk over ties to

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Subject: Disney's image at risk over ties to Myanmar (fwd)



---------- Forwarded message ----------
Date: Tue, 28 Jan 1997 22:37:55 GMT
Newsgroups: soc.culture.burma, soc.culture.asean, soc.culture.indonesia,
    soc.culture.singapore, soc.culture.thai
Subject: Disney's image at risk over ties to Myanmar

The Asia Times

Disney's image at risk over ties to Myanmar

Yaroslav Trofimov, Haifa, Israel, 28th January 1997

Defying the international boycott campaign against Yangon, an Israeli
company partially-owned by Walt Disney is planning to invest tens of
millions of dollars in Myanmar's petrochemical industry. 

A similar-sized project was also under consideration in Vietnam, said
Eli Hovev, manager of the Haifa area-based Dor Energy Trade. 

The Israeli company plans to set up petrochemical plants in both Asian
countries, and to operate them as 50-50 joint ventures with the
state-owned monopolies, Myanmar Petrochemical Enterprises
(MPCE) and Petro-Vietnam. This would be the first sizable Israeli
investment in either country. 

One-third of Dor Energy, Dor Energy Trade's parent company, is
owned by Shamrock Holdings, the investment arm of the Walt Disney
empire. 

The remaining two-thirds of the company is held by the Tel
Aviv-based Dankner group, a privately-held conglomerate which
effectively dictates company policy. 

According to Hovev, Dor Energy's negotiations with Myanmar were
more advanced that those with Vietnam. The Israeli company and
MPCE recently signed a memorandum of understanding and the actual
contract may be finalized within a month. 

 "We are not worried about the international campaign against
Myanmar. It is true that some companies, mostly American, left the
country, but many others went in," Hovev said. "As far as I know,
there is no political pressure on us from the Israeli government not
to do business with Myanmar." 

Myanmar, historically one of Israel's most faithful Asian allies,
still maintains a privileged relationship with many Israeli decision
makers. 

Industry analysts warned that Dor Energy's Myanmar petrochemical deal
may lead to a clash between Dankner group and Walt Disney. 

Over the past two years, many companies operating in the United States
have found themselves targeted by painful boycott campaigns  launched
by supporters of democracy in Myanmar. 

The organizers of the boycott believe that any foreign investment in
Myanmar makes it easier for the State Law and Order Restoration
Council (SLORC), the country's military government, to repress the
democracy movement. 

The Dankner group does little business in the US and is therefore
relatively immune to the boycott campaign. 

The same, however, could not be said about Walt Disney, whose
carefully-nurtured public image in the US could be badly hurt by a
financial partnership with SLORC's Myanmar - which is definitely no
Disneyland.