UNOCAL DEFENDS BURMA INVESTMENTS AT

[moe@xxxxxxxxxxxxx]

Subject: UNOCAL DEFENDS BURMA INVESTMENTS AT ANNUAL MEETING

Monday June 2 7:42 PM EDT 

Unocal defends Burma investments at annual meeting

By David Brinkerhoff 

BREA, Calif., June 2 (Reuter) - Unocal Corp. officials Monday defended the
oil company's
controversial investments in Burma, telling shareholders it had no plans to
walk away from a
planned $1.2 billion pipeline project. 

During the annual meeting, Chief Executive Officer Roger Beach pledged to
maintain the
company's partial stake in the project despite criticism that the company
uses slave labor, causing
the death and torture of Burmese workers. 

The pipeline, due for completion next year, is to carry natural gas from
offshore Burma to
Thailand. 

``We remain fully committed to all projects in (Burma) that we're
participating in,'' Beach told
about 500 stockholders at the meeting. 

Mounting international criticism, including sanctions against new U.S.
investment, has focused
attention on Unocal's growing overseas investments, which will account for
two-thirds of its $1.34
billion capital spending in 1997. 

In his remarks, Beach stressed Unocal has improved the lives of Burmese
through schools, jobs,
and health centers. 

``Every Unocal stockholder should be proud of our investment in (Burma),''
he said. 

About 95 percent of Unocal shareholders rejected two proposals to
investigate how much the
Burmese investments would damage the company's public image and to look into
allegations of
illegal drug laundering by one of its Burmese partners. However, the
proposals did receive enough
support to be considered at next year's meeting. 

During the two-hour meeting, which was puntuated by several outbursts from
critics of the
company's policies, a dozen shareholders condemned Unocal's policies and
called for further
investigations. 

Outside, about two dozen protesters waved placards or offered passing
motorists samples of fake
heroin. 

Critics say one of Unocal's pipeline partners, Myanmar Oil and Gas
Interprise (MOGE), is a
conduit for illegal drug laundering and that half the heroin coming to the
United States goes through
Burma, also known as Myanmar. 

``We're not condemning progress or development...but there is everything
wrong with doing this at
the price of human dignity,'' said Father Joe La Mar, a shareholder. 

Beach said Unocal was moving forward with its pipeline project, but if
forced out would still make
money. 

``We're confident we can sell our interest at a premium,'' Beach said. (UCL
- news)