Reuters-Myanmar Says U.S. Ruling On

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Subject: Reuters-Myanmar Says U.S. Ruling On Investment Realistic 

Myanmar Says U.S. Ruling On Investment Realistic
09:43 a.m. Jun 25, 1999 Eastern
BANGKOK, Thailand (Reuters) - Military-ruled Myanmar Friday hailed as
realistic a U.S. court's decision to overturn a state law penalizing
American firms doing business with it.

The U.S. appeals court Tuesday struck down the so-called ''Massachusetts
Law'' as unconstitutional, and declared that the 1996 state measure
infringed on the federal government's right to make foreign policy and
regulate foreign commerce.

The state law, part of efforts to impose sanctions on Myanmar to try to
hasten it toward democracy, effectively barred firms from doing business
with Myanmar. It did so by adding 10 percent to any bids received from such
firms.

The Yangon government said the ruling had discouraged reputable U.S. firms
from doing business in Myanmar and caused them to lose out to other
competitors.

``Fortunately, pragmatic observers are now witnessing a more realistic and
responsible step being taken recently by the U.S. Circuit Court of Appeal,''
it said.

``It is Myanmar's desire to become a source of opportunities for global
economic development with its vast potential,'' it added.

Thursday, El Segundo, Calif.-based oil firm Unocal Corp., pilloried by
rights activists for its involvement in Myanmar, welcomed the appeals court
ruling.

It said the ruling vindicated the firm's policy of engaging the military
government in Yangon.

The firm also said it now wanted the U.S. government to lift economic
sanctions on Myanmar imposed in 1997 to counter repression of the Myanmar
opposition led by Aung San Suu Kyi.

The sanctions barred new U.S. investment but allowed existing projects to go
ahead.

The EU bans senior Myanmar officials from its borders but has no economic
sanctions.

Unocal has a 28 percent investment in Myanmar's giant Yadana gas project.

France's Total, the major shareholder in the Yadana gas project with a 31
percent stake, has also faced strong criticism for its involvement with the
generals.