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Reuters-Unocal plans to stay in Mya



Unocal plans to stay in Myanmar, CEO says 
05:52 p.m Aug 20, 1998 Eastern 

HOUSTON, Aug 20 (Reuters) - Unocal Corp. plans to stay in Myanmar, despite
calls by human rights groups for its withdrawal, Chairman and Chief
Executive Officer Roger Beach said on Thursday. 

Beach said Unocal also would gladly do business in Iran, if it weren't
prohibited from doing so by U.S. sanctions, which he said were damaging to
the U.S. economy and politically ineffectual. 

``Engagement is the answer, not isolation. I'm very proud that we're in
Myanmar. We've done a lot of good work there and they've learned a lot from
us,'' Beach told a meeting of Houston's Asia Society. 

Unocal, with a 28.3 percent stake in the Yadana offshore gas field, is the
last major U.S. oil group with interests in Myanmar after Atlantic
Richfield Co.'s recent withdrawal from the nation. 

Human rights groups, angered by the military government's clampdown on
pro-democracy activists, have been pressing foreign companies to pull out
of Myanmar. 

But Beach said U.S. and other foreign companies could exert a positive
influence on economic, social and political conditions through their
investments in Asian countries. 

He pointed in particular to Unocal's long presence in Indonesia, which he
said had contributed to the emergence of a middle class that had demanded
greater democracy, culminating in the resignation earlier this year of
President Suharto. 

In his address to Houston's Asia Society, Beach said if the United States
lifted its unilateral sanctions, Unocal would move into Iran and other
countries that were currently off limits. 

``I would become engaged in Iran...I would be happy to look at all
(countries) that aren't involved in known terrorist activities,'' he said,
in response to questions. 

Beach also said the United States should further help Japan stabilise its
currency because he believes that economic recovery in Japan is crucial to
ending the broader crisis in the region. 

And, in response to reporters' questions after his speech, Beach laughed
off speculation that Unocal might be in the mood to merge, adding: ``My
phone hasn't rung.'' But he didn't completely rule it out either, saying,
``if somebody is foolish enough to spend too much money, you have to
consider that.'' The questions followed on the heels of last week's
announcement by British Petroleum Co. 

Plc and U.S.-based Amoco Corp. of their intent to merge in a stock-swap
deal valued at $49 billion. 

On Thursday, Unocal's stock rose 50 cents to $35.69 a share in composite
New York Stock Exchange trading.