Unocal chief defends investment in Myanmar

Unocal chief defends investment in Myanmar

BANGKOK (AFP): Unocal chairman Roger Beach yesterday defended the U.S. oil giant's investment in Myanmar, saying such projects benefited the country's people as well as company shareholders.

Asked his reaction to U.S. President Bill Clinton's reported decision to impose economic sanctions on Myanmar, Beach said he was "disappointed" but that Unocal remained committed to the US$1.2 billion Yadana project.

He declined to comment further pending confirmation of the report and clarification of the terms of any sanctions.

In an earlier address to the American Chamber of Commerce in Bangkok, Beach had argued that economic sanctions were counterproductive. "They hurt people, not regimes," he said.

"And they cut off American companies from places in the world where we should be involved," he added.

Answering questions after the speech, Beach stressed that projects such as the Total-Unocal project "benefit people of the country and add value to our share-holders."

Beach told U.S. and Thai businessmen that politicians and activists were wrong in thinking a pullout would force a change of government in Myanmar. "We contend that open markets set the fastest route to an open society."

The Unocal president and chief executive officer also defended the project's record on preserving the environment and promoting better labor and health conditions for people in the area of southeast Myanmar.

Landholders were fairly compensated for land needed for the project -- "about $2,000 an acre" -- and no villages were relocated, he said.