Resolution to investigate Unocal's

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Subject: Resolution to investigate Unocal's links to Drug money laudering

OCAW (Oil, Chemical & Atomic Workers Inte, Union, AFL-CIO
News release
Date March 20,1997

SEC Accepts Retired Oil Worker's Shareholder Resolution to Investigate
Unocal's links to Drug money Laundering

OCAW president expects further roadblocks from Unocal

- The 90,000 member oil, chemical and atomic workers international union
(OCAW) annonced today that the effort by Unocal Corporation to exclude a
controversial resolution from its annual proxy statement and to prevent
a vote on the resolution has been denied by the Securities and Exchange
Commission.
- The resolution submitted by a retired OCAW member, calls on oudside or
non-employee board members of Unocal to investigate the allegation that
Unocal's partner in Burma is serving as a conduit for laudering money
obtained from the illegal sale and production of heroin. If the
allegation is true, the resolution asks board members to determine if
Unocal officials had any knowledge of it and to take appropriate action
based on findings.
- Unocal has desperately sought to have the SEC submit a so-called
"no-action letter" which would have permitted Unocal to exclude the
resolution. However, the SEC in March 5, 1997 letter to Unocal denied
all of company's objections.
- " We are pleased that the SEC acted judiciously in throwing out
Unocal's objections, and we hope that Unocal shareholders can now become
better informed about the real cost of doing business with Burma's
military regime, which may include a rise in drug use in the U.S." said
OCAW President Robert Wages.
- According to the U.S state department, Burma is the largest producer
of illegal heroin in the world,and 60 per cent of heroin seized by law
enforcement officials in U.S. comes form Burma.
- "Unocal has had plenty of time to present evidence that the allegation
is false but has done nothing-- which has only added to growing
suspicious that its partner is serving as a front for drug money
laundering by Burma's narco-military regime", added Wages.
- Wages cautioned that further road blocks can be excepted from Unocl to
ensure the resolution does not pass at the shareholders' meeting in
June, and he stated that a "coverup" investigation by Unocal would be no
surprise. " Coporations always have the upper hand in shareholder
meetings and only a large shareholder and publis outcry will produce a
real investigation," he said.
- Aung San Suu Kyi, a Nobel Peace Prize winner and leader of the
democratic opposition in Burma who still remains under virtual house
arrest, has repeatedly urged foreign corporations to stay out of Burma
and has heaped partcular scon on oil companies for their support of
military regime.
- OCAW noted that, if Unocal ignores this allegation and it letter turns
out to be true, the company along with its officers and directors will
expose themselves to significant criminal and civil liability under U.S.
law.Furthermore , if Unocal manangement knowingly ignores employee
wrongdoing they breach their fiduciary duty and can be held personally
liable in derivative lawsuits. Unocal shareholders can take action
against manangement and directors to protect the reputation of their
company and value of their shares.
- Unocal's partners in the construction of natural gas line across Burma
are French-own Total SA and Myanmar Oil and Gas Enterprise (MOGE), which
was established by Burmese Military regime. The drud laundering
allegation was made in a December 16,1996 article of the Nation, which
reported on finding from a four year investigation by Geopolitical
Drugwatch that MOGE was the major channel for laundering revenues of
heroin produced and exported by Burma's military regime.
- According to the allegation, hundreds of millions of dollars have
flowed out of MOGE's coffers to its Singapore bank accounts and in one
intance $60 million were channeled through MOGE by Khun Sa, purported to
be Burma's most renowned drug lord. Khun Sa has been indicted in New
York by a feferal prosecutor and now live in Rangoon under the
protective umbrella of Burma's narco-regime. Other than limited payments
made to MOGE by Unocal and Total, MOGE has no other identifiable source
of income
- OCAW plans to mobalize its 90,000 members in late Aprial in a" Three
days for Burma" campaign which will include a petition to drive calling
on President Clinton to impose immediate economic sanctions on Burma's
military regime. In February, the 12.9 million member AFL-CIO passed a
strongly-worded resolution supporting the imposition of immediate
economic sanctions and the passage of selective purchasing laws to
isolate Burma's military regime.