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Reuters-FOCUS-Unocal hails ruling o



Subject: Reuters-FOCUS-Unocal hails ruling on Myanmar 

FOCUS-Unocal hails ruling on Myanmar
07:47 a.m. Jun 24, 1999 Eastern
By David Brunnstrom

BANGKOK, June 24 (Reuters) - U.S. oil firm Unocal Corp, pilloried by rights
activists for involvement in Myanmar (Burma), on Thursday hailed the
overturning of a state law that penalised firms doing business there as a
victory.

The U.S. appeals court decision vindicated the firm's policy of engaging the
military government in Yangon and the U.S. government should lift sanctions,
said Carol Scott, Singapore-based spokeswoman for Unocal.

``We think this is a victory for engagement and for the sanctity of the U.S.
constitution,'' she said. ``We firmly believe engagement is the way to go to
promote freedom and democracy.''

U.S. lawyers said the decision this week to strike down the so-called
``Massachusetts Law'' called into question scores of other measures enacted
by states dealing with trade issues.

A response to the widespread repression of Myanmar's democratic opposition,
the law effectively barred firms doing business with Yangon from also doing
business with Massachusetts by adding 10 percent to any bids received from
such companies.

The measure had been the subject of intense talks between Washington, Japan
and the European Union as well as the Association of Southeast Asian
Nations. The EU has filed a complaint with the World Trade Organisation.

Aung Naing Oo, a spokesman for the anti-Yangon National Council of the Union
of Burma, called the repeal of the law a ``big blow'' but said he did not
think it would lead to a significant increase in investment in Myanmar.

``The government has not created the atmosphere necessary to make investing
worthwhile,'' he said. ``This is not very positive but it's not the end of
the story.''

He said he was not surprised by Unocal's response. ``We all know they've
been helping the military in their PR...they are accomplices to the rights
abuses the regime has committed.''

Scott said Unocal had helped to improve conditions in Myanmar.

Asked what changes it had encouraged in its 10 years of engagement, she said
it had meant employment opportunity, technology training, education and
healthcare opportunities.


``Reaching out through this kind of engagement is the best way to achieve
change, not hiding behind sanctions. There should be more American companies
there, not fewer,'' she said.

She said people living near the gas project Unocal is involved in were happy
with the opportunities it presented. ``It will only serve to quicken the
process towards democratisation.''

Critics say Unocal's 28 percent investment in the $1 billion Yadana gas
project in Myanmar will only help to prolong the rule of the military, which
came to power in 1988 after the bloody suppression of a pro-democracy
uprising and then ignored a 1990 election result.

Washington imposed unilateral sanctions in 1997 to protest against the
government's human rights record. These barred new investment but allowed
existing projects to go ahead. The EU bans senior Myanmar officials from its
borders but has no economic sanctions.

Activists in the United States have been campaigning for a revocation of
Unocal's charter because of its Myanmar investment. A similar petition was
rejected last year.

France's Total, the major shareholder in the gas project with a 31 percent
stake, has faced strong criticism.

It rejects charges from activists that forced labour was used in building
its pipeline through Myanmar for the project.